FIN 571- Flatte Restaurant is considering the purchase of a $10,800 soufflé maker.
Question # 00345098
Posted By:
Updated on: 07/25/2016 04:17 AM Due on: 07/25/2016
Flatte Restaurant is considering the purchase of a $10,800 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 2,400 soufflés per year, with each costing $2.80 to make and priced at $5.65. Assume that the discount rate is 16 percent and the tax rate is 35 percent. |
| What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
-
Rating:
/5
Solution: FIN 571- Flatte Restaurant is considering the purchase of a $10,800 soufflé maker.